Gold on track for first weekly dip in six; focus on U.S. inflation data [Video]

Gold was little changed on Friday ahead of a key U.S. inflation report, but prices were on track for their first weekly drop in six weeks on easing concerns of a major escalation of the Middle East crisis.

Spot gold edged 0.1% higher at $2,334.57 per ounce by 0409 GMT. U.S. gold futures rose 0.2% at $2,346.70.

However, for the week, prices were down 2.3%, set for their biggest weekly drop since early December, after a major escalation in the Middle East crisis was avoided. Prices were down nearly $100 from an all-time high of $2,431.29 scaled on April 12.

Prices are now somewhat steady as they remain sensitive to expectations around rate cuts, more so after “U.S. economic data releases last night provided some dilemma with a significant weakening of growth, while inflationary pressures were slow to abate”, said IG market strategist Yeap Jun Rong.

Data showed that U.S. economic growth slowed more than predicted in the first …